April 1 2019, David R Brown
Sumitomo acquires a majority stake in SACI-CFPA (SACI), a Paris-based cosmetic ingredients distributor
Tokyo-headquartered, Sumitomo Corporation and SACI–CFPA, a French-based cosmetic ingredients distributor, have agreed that Sumitomo will acquire 90% of SACI-CFPA's shares. SACI-CFPA has distributed ingredients, developed formulations and provided solutions to cosmetic manufacturers for nearly 40 years. It provides ingredients to more than 300 companies throughout Europe, with a portfolio heavily weighted towards naturally-derived materials.
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The acquisition of SACI-CFPA expands Sumitomo Corporation’s business in the European market. Europe's cosmetic market is worth nearly EUR 78 billion, and is the largest in the world along with North America. The European market is expected to grow at an average rate of 3% annually over the next few years.
The move is the latest in Sumitomo’s strategic growth plan for its personal care business; in recent years it has acquired U.S.-based Presperse Corporation, Cosmotec in Brazil and Europe’s Summit Pharmaceuticals. Sumitomo is looking to integrate SACI into its current cosmetic distribution network, leveraging each company’s product portfolio, R&D and formulation knowledge and regulatory expertise to enhance operations and sales opportunities across their regions.
In 2018 SACI-CFPA had sales in excess of EUR 25 million and 21 employees. Terms of the transaction were not disclosed.
About Sumitomo Corporation
Sumitomo Corporation is one of the largest worldwide Sogo shosha general trading companies, and is a diversified corporation (conglomerate). The company was incorporated in 1919, and is a member company of the Sumitomo Group. In the financial year ending march 2018 Sumitomo Corporation had revenues of USD 43.6Bn.
Source(s): Sumitomo Press Release